Canadian Pacific Kansas City Limited (CPKC) has announced its intention to issue US $1.2 billion in debt through its subsidiary, Canadian Pacific Railway Company. The offering consists of US $600 million of 4.800% notes due 2030 and US $600 million of 5.200% notes due 2035, both of which will be guaranteed by CPKC. The net proceeds from the offering will primarily go towards refinancing outstanding debt and general corporate purposes. The offering is expected to close on March 17, 2025, and the joint active bookrunners for the offering are Wells Fargo Securities, LLC, BofA Securities, Inc., Goldman Sachs & Co. LLC, and Morgan Stanley & Co. LLC, along with a syndicate of other financial institutions.
The offering is being made pursuant to an effective shelf registration statement previously filed with the Securities and Exchange Commission (SEC). CPKC's press release also includes a disclaimer that it shall not constitute an offer to sell or the solicitation of an offer to buy any securities.
The announcement comes as CPKC aims to manage its debt and utilize the net proceeds for strategic financial purposes. This move is reflective of the company's efforts to optimize its capital structure and meet its financial obligations. Following these announcements, the company's shares moved -1.2%, and are now trading at a price of $73.22. For the full picture, make sure to review Canadian Pacific Kansas City's 8-K report.
